AMLC probes banks over transactions in Alice Guo money laundering case

The Anti-Money Laundering Council (AMLC) is assessing the possible liabilities of local banks that allegedly failed to report transactions linked to the money laundering case of dismissed Bamban, Tarlac mayor Alice Guo.

Senator Grace Poe divulged this during the continuation of the Senate plenary deliberations on the bill containing the proposed 2025 national budget.

"The AMLC opened the enforcement action proceedings against those banks involved in Alice Guo's case to determine if they have violated the requirement under AMLA [Anti-Money Laundering Act] to file STRs [suspicious transaction reports] with the AMLC," Poe said upon the interpellation of Senate Deputy Minority Leader Risa Hontiveros.

"These proceedings are ongoing and should the AMLC find that they indeed violated the said requirement, the AMLC will file formal charges against said banks or they may be liable for fines ranging from P50,000 to P500,000 per transaction but not exceeding P10 to P20 million depending on the attendant circumstances," she added.

According to Poe, this is without prejudice to the possible criminal liability if "their officers are found to have knowingly facilitated the crime of money laundering."

While stressing the need for prevention, Poe said "we are looking forward to AMLC's cases that they’ll actually be able to prosecute those that may be found to have caused these money laundering activities."

AMLC explained, through Poe, that they were not able to detect the transactions supposedly involved in the POGO operations in Bamban, Tarlac due to the failure of submitting suspicious transaction reports (STRs) to the council.

"Because of the failure of some covered persons to report through STRs and this is also where it will come into play where the bank representative might have to be investigated as well," Poe said.

"But, of course, we can't rely solely on what's being reported. That's why I think if we have an objective system such as the computerization of the categories then it will also prompt members of the AMLC to look into it ahead of time, be more proactive. But again there might be some connivance between their banks, the local representatives of the banks and also those covered individuals," she noted.

The AMLC is seeking funds for 2025 to procure an artificial intelligence (AI) system that it said could help it report suspicious transactions, following the Guo case.

"AMLC needs support to procure and sustain the artificial intelligence project and other significant programs of AMLC like subscription of security IT software," Poe, who defends AMLC's 2025 budget as chairperson of the Senate finance committee, said.

"This is why we added additional funding under the Senate committee report for the artificial intelligence project of AMLC to help them evaluate the great number of suspicious transaction reports that they receive. Kasi syempre kung mano-mano 'yan, manual, 'di ba napakahirap? [Of course, if it's manual, wouldn't it be difficult?] Daily, how many transactions are there in the bank? So even if you have a threshold there's still thousands of them," she explained.

According to Poe, 87 cases out of the 183 cases filed by AMLC from the first to the third quarter of 2024 are related to the Bamban POGO hub.

Since 2017, Poe said the AMLC was able to file 744 cases which included freeze orders, civil forfeiture cases, administrative cases, and formal charges.

Concerning transactions, Poe said AMLC was able to receive reports on P23.882 million covered transaction reports (CRTs) from the first to third quarter of 2024.

AMLC, through Poe, explained that the general threshold for covered transaction reports (CTRs) is P500,000 in a day, but the threshold is higher for jewelers at P1 million, casino cash at P5 million, and real estate at P7.5 million.

Meanwhile, STRs have no amount threshold but must be reported if:

• there is no underlying legal or trade obligation, purpose or economic justification;
• the client is not properly identified;
• the amount involved is not commensurate with the business or financial capacity of the client;
• taking into account all known circumstances, it may be perceived that -the client’s transaction is structured in order to avoid being the subject of reporting requirements under the Act;
• any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or the client’s past transactions with the covered institution;
• the transaction is in any way related to an unlawful activity or offense under this Act that is about to be, is being or has been committed; or
• any transaction that is similar or analogous to any of the foregoing

"With the AI project, the massive volume of CTRs and STRs alongside their increasing trend, the aim of the AI project is to enhance AMLC’s capability in detecting and preventing money laundering services. It can assist in the discovery of unusual financial transactions and possible illicit financial activities…That's the hope of having an AI," Poe said.

Last Friday, Department of Justice's Assistant State Prosecutor Charlie Guhit said that the money laundering complaint filed against Guo and others has been submitted for resolution.

In August, authorities filed 87 counts of money laundering against Guo and 35 others over the raided POGO hubs in Bamban and Porac, Pampanga.

During the Senate investigation into the operations of POGO hub in Bamban in July, Senator Sherwin Gatchalian said the AMLC has "totally failed" in performing its mandate as it was not able to flag the entry of P6.1 billion used for the construction of the raided POGO complex in Bamban. — BM, GMA Integrated News